Vegoils: Palm oil hits record high on concerns of tight edible oil supply

MMTec

12/05/2021 04:31

KUALA LUMPUR, May 12 (Reuters) - Malaysian palm oil futures
hit a record high of 4,513 ringgit ($1,094.33) a tonne on
Wednesday, helped by concerns of tight global edible oil supply
and on trader positioning ahead of a key U.S. report for grains
and soybeans. 
    The benchmark palm oil contract  FCPOc3  for July delivery
on the Bursa Malaysia Derivatives Exchange was up 143 ringgit,
or 3.29%, at 4,493 ringgit ($1,089.48) a tonne by 0250 GMT.
    The Malaysian bourse will be closed after the midday break
for Eid celebration, and will resume trade on May 17. 
        
    FUNDAMENTALS
    * Traders are expecting the World Agricultural Supply and
Demand Estimates report due later in the day to show a supply
squeeze until 2022. The U.S. Department of Agriculture will give
its first global outlook for grains and soybeans in 2021/22 and
update its 2020/21 estimates in the report.  urn:newsml:reuters.com:*:nL1N2MX1P2
    * Palm oil is being supported by a rally in the global
agricultural market, led by Chicago corn and soybean futures,
which are trading at multi-year highs.
    * The edible oil is affected by price movements in related
oils as they compete for a share in the global vegetable oils
market.
    * Dalian's most-active soyoil contract  DBYcv1  rose 3%,
while its palm oil contract  DCPcv1  gained 3%. Soyoil prices on
the Chicago Board of Trade  BOcv1  were also up 1.3%.
    * Palm oil is poised to break a resistance at 4,436 ringgit
per tonne and rise into a range of 4,494 ringgit to 4,556
ringgit, Reuters technical analyst Wang Tao said.  TECH/C 
    
    MARKET NEWS
    * Asian shares fell for a second straight session on
Wednesday to one-month lows as investors speculated surging
commodity prices and growing inflationary pressure in the United
States could lead to earlier rate hikes and higher bond yields
globally.  MKTS/GLOB     
    
        
    DATA/EVENTS
    0600  Germany  HICP Final MM               April
    0600  UK       GDP Est 3M/3M               March
    0600  UK       GDP Estimate MM, YY         March
    0600  UK       Manufacturing Output MM     March
    0600  UK       GDP Prelim QQ, YY           Q1
    0645  France   CPI (EU Norm) Final MM, YY  April
    1230  US       CPI MM, SA                  April


    ($1 = 4.1240 ringgit)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
p1    https://tmsnrt.rs/3uBs0x0
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 (Reporting by Mei Mei Chu; Editing by Sherry Jacob-Phillips)
 ((Meifong.chu@thomsonreuters.com))
 
((For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type  OILS/MY01 .
* To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in  OILS/ASIA2  and press enter, or double click between the brackets. 
* Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11.
Vegetable oils                        OILS/ASIA1 
Malaysian palm oil exports            SGSPALM1   
CBOT soyoil futures                   0#BO:      
CBOT soybean futures                  0#S:       
Indian solvent                        SOLVENT01  
Dalian Commodity Exchange             DC/MENU   
Dalian soyoil futures                 0#DBY:   
Dalian refined palm oil futures       0#DCP:   
Zhengzhou rapeseed oil                0#COI:   
European edible oil prices/trades     OILS/E    ))